Moody's ups ArcelorMittal

Moody's Investors Service said it upgraded to Baa2 from Baa3 ArcelorMittal's issuer rating and ArcelorMittal Finance and ArcelorMittal USA's senior unsecured ratings. The agency upgraded the short-term rating of ArcelorMittal Finance to P-2 from P-3.

The outlook is stable.

"The rating action was prompted by the now achieved visibility of successful integration efforts with synergy effects resulting in cost reductions of around $1.3 billion per September and the commitment of [the company's] management to keep its net debt-to-EBITDA ratio below 1.8 times, even if contemplating large-sized acquisitions in order to maintain a solid investment-grade rating," Matthias Hellstern, Moody's analyst, said in a written statement.

Moody's said ratings also consider the stable outlook for the steel industry and the improving vertical integration of the company as well as its position as the world's most geographically diversified steel producer.

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